Which of the Following Statements Is True

question 16

Multiple Choice

Which of the following statements is true?

• A) If you decrease an asset account,you could decrease a liability account.
• B) If you increase a liability account,you could increase a shareholders' equity account.
• C) If you increase an asset account,you could increase another asset account.
• D) All of these.

---

Definitions:

Business Operations

The activities and tasks companies engage in on a daily basis to increase value for the business and its stakeholders, encompassing production, sales, and administration.

Fixed Assets

Assets of a long-term nature such as buildings, machinery, and equipment that are used in the operations of a business.

Share Exchange

A transaction where shareholders agree to trade their shares for shares of another company, often used in acquisition deals.

Shareholder Group

A collection of individuals or institutions that own shares in a corporation, giving them partial ownership and possibly the right to vote on corporate matters.